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International Formation

Estonia OÜ — Your EU Company

Form an EU company through Estonia's e-Residency program. Zero tax on retained profits, fully digital management, and access to the entire European market.

$1,499

All-inclusive — no hidden fees

Form Your EU Company — $1,499

What Is e-Residency?

Estonia's e-Residency is a government-issued digital identity for non-residents that allows entrepreneurs worldwide to start and manage an EU-based company entirely online. Launched in 2014, it has been adopted by over 100,000 people from 170+ countries.

e-Residency is not a visa, citizenship, or physical residency. It does not grant the right to live in or travel to Estonia or the EU. What it provides is a digital ID card with a secure chip that enables you to digitally sign documents, authenticate with Estonian government services, and manage your company remotely from anywhere in the world.

Think of it as a digital key to the EU business environment — you get a real, fully regulated EU company without setting foot in Europe.

The e-Residency Process

1

Apply Online

Submit your application at e-Residency.gov.ee with a passport photo, government ID, and a brief statement of intent. The application fee is EUR 100-120 (paid to the Estonian government, separate from our formation fee).

2

Background Check

The Estonian Police and Border Guard Board processes your application. This typically takes 4 to 8 weeks. You will receive email updates on your application status.

3

Pick Up Your Card

Collect your e-Residency digital ID card in person at an Estonian embassy or consulate. For US residents, the Embassy of Estonia in Washington, DC is the primary location. Consulates in New York and San Francisco are also available.

4

Ready to Incorporate

With your e-Residency card and USB card reader, you can now digitally sign your company formation documents. This is where our formation service takes over.

Why Estonia?

0% on Retained Profits

Unique in the EU — corporate profits are not taxed until distributed. Reinvest and grow without tax friction.

Full EU Market Access

An Estonian company is an EU company. Sell goods and services across 27 EU member states and the EEA.

100% Digital

No paper. No travel. Sign documents, file taxes, and manage your company entirely online with your e-Residency card.

Business-Friendly Regulation

Estonia consistently ranks among the top countries globally for ease of doing business, digital government, and economic freedom.

What's Included

Estonian Business Register filing
e-Residency application guidance and support
Contact person service (1 year)
All government fees included (state fee + registration duty)
Articles of Association preparation
Share capital guidance (EUR 2,500 — deferrable)
Banking guidance for e-Residents
Digital signing setup assistance
Compliance calendar with Estonian deadlines
Annual report filing guidance

How It Works

1

Get e-Residency

Apply online at e-Residency.gov.ee. Processing takes 4-8 weeks. Pick up your digital ID at an Estonian embassy.

2

Purchase Formation

Once you have your e-Residency card, purchase our Estonia OÜ formation package.

3

We Register

We prepare your Articles of Association and register your company with the Estonian Business Register.

4

Go Live

Company registered in 1-3 business days. Sign documents digitally with your e-Residency card from anywhere in the world.

Pricing

$1,499 one-time formation

All-inclusive formation package. Government registration fees, contact person for year one, and all documentation included. The e-Residency application fee (EUR 100-120) is paid separately to the Estonian government during your e-Residency application.

Estimated Annual Costs After Year One

Contact person EUR 150-300/year
Accounting services Varies by volume
Annual report filing Free

Important Tax Considerations

Estonia's corporate tax system is unique in the world: retained corporate profits are taxed at 0%. Tax is triggered only when profits are distributed to shareholders. The standard distribution tax rate is 20% (calculated on the gross amount — effectively 20/80 of the net distribution). Regular dividend distributions benefit from a reduced 14% rate after three years.

This system is exceptionally favorable for businesses that reinvest profits into growth. You can accumulate earnings, invest in R&D, hire staff, and expand operations — all without corporate income tax.

For US citizens and tax residents, the IRS still expects you to report worldwide income. Owning a foreign corporation triggers Form 5471 reporting requirements. GILTI (Global Intangible Low-Taxed Income) and Subpart F provisions may apply, potentially requiring you to recognize income even before the Estonian company distributes it. The US-Estonia Tax Treaty may provide some relief.

Tax Disclaimer: This information is for general guidance only and does not constitute tax advice. The interaction between Estonian corporate taxation and US tax obligations (GILTI, Subpart F, Form 5471) is complex. Consult with an international tax advisor before forming an Estonian company.

Frequently Asked Questions

Do I need to visit Estonia to form a company?
No. You never need to visit Estonia. The e-Residency digital ID card can be picked up at an Estonian embassy or consulate — the closest for US residents is typically the Embassy of Estonia in Washington, DC, or consulates in New York and San Francisco. After pickup, the entire company formation and management process is done online using your e-Residency card and a card reader.
How long does the e-Residency application take?
The e-Residency application typically takes 4 to 8 weeks for processing. This includes a background check by the Estonian Police and Border Guard Board. Once approved, you will receive a notification to pick up your digital ID card at your chosen pickup location. The card itself is valid for 5 years.
What is a contact person and why do I need one?
Estonian law requires every company with non-resident board members to appoint a contact person with an Estonian address. The contact person receives official correspondence from Estonian authorities on behalf of the company. This is similar to a registered agent in the US. Our formation package includes one year of contact person service.
Can I use the Estonian company to sell in the entire EU?
Yes. An Estonian OÜ is a full EU legal entity. You can sell goods and services throughout the European Union and European Economic Area. For B2B transactions within the EU, you can apply for a VAT number and use the reverse charge mechanism. For B2C sales exceeding thresholds in other EU countries, you may need to register for VAT in those countries or use the OSS (One-Stop Shop) scheme.
Is the 0% tax rate real?
Yes, but with an important nuance. Estonia does not tax corporate profits that are retained in the company. Tax is only triggered when profits are distributed (dividends, fringe benefits, or non-business expenses). The distribution tax rate is 20% (calculated as 20/80 of the net distribution). This means you can reinvest profits indefinitely at 0% — tax only applies when you take money out.
What are the ongoing costs after formation?
Annual costs typically include: contact person service (150 to 300 EUR per year), accounting services (varies by transaction volume, typically 50 to 200 EUR per month for small businesses), annual report filing with the Business Register (free), and any applicable VAT or payroll obligations. If you have no transactions, costs are minimal — just the contact person and a simple annual report.

Ready to launch your EU company?

Estonian OÜ with 0% tax on retained profits. e-Residency guidance, Business Register filing, and contact person included.

Form Your EU Company — $1,499
Start your business →